Esterline's 2Q results and forecast disappoint
Esterline 2Q profit drops and aerospace co. lowers forecast for year; shares fall after hours
BELLEVUE, Wash. (AP) -- Esterline Corp. said Thursday that its net income fell in its fiscal second quarter, and the aerospace and defense company lowered its forecast for the year.
The company, which is based in Bellevue, Wash., earned $35.5 million, or $1.12 per share, for the quarter that ended April 26. That is compared with earnings of $45.2 million, or $1.44 per share, for the second quarter last year, which included a benefit of 30 cents per share from a litigation settlement.
Analysts polled by FactSet were anticipating that the company would earn $1.34 per share.
Revenue fell 1 percent, to $499.6 million from $504.8 million, also below Wall Street's estimate of $509.6 million. New orders fell because of reduced order rates in some defense and industrial units.
The company is focusing on controlling costs and making its operations more efficient to help offset "uncertainty" in defense spending and the weak economy in Europe, said Esterline's CEO Brad Lawrence. The company lowered its earnings outlook for the year to reflect the pressures on its business.
The company now expects to earn $5.30 to $5.50 per share for the year, down from a previous forecast of $5.45 to $5.80 per share. It predicted revenue of $2 billion.
Analysts were anticipating earnings of $5.60 per share on revenue of $2.07 billion.
Shares fell $1.45, or 2 percent, to $72.25 in after-hours trading. Its stock had fallen $1.96 to close regular trading Thursday at $73.70. The stock is up 16 percent in 2013.
